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ACCOUNTANCY
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Accountancy
Accountancy (profession) or accounting (methodology) is the
measurement, disclosure or provision of assurance about financial information
primarily used by managers, investors, tax authorities and other decision makers
to make resource allocation decisions within companies, organizations, and
public agencies. The terms derive from the use of financial accounts.Accounting
is the art of measuring, communicating and interpreting financial activity.
Accounting is also widely referred to as the "language of business".Financial
accounting is one branch of accounting and historically has involved processes
by which financial information about a business is recorded, classified,
summarized, interpreted, and communicated; for public companies, this
information is generally publicly-accessible. By contrast management accounting
information is used within an organization and is usually confidential and
accessible only to a small group, mostly decision-makers. Tax Accounting is the
accounting needed to comply with jurisdictional tax regulations.Practitioners of
accountancy are known as accountants. There are many professional bodies for
accountants throughout the world. Many allow their members to use titles
indicating their membership or qualification level. Examples are Chartered
Certified Accountant (ACCA or FCCA), Chartered Accountant (FCA, CA or ACA),
Management Accountant (ACMA, FCMA or AICWA), Certified Public Accountant (CPA)
and Certified General Accountant (CGA).Accounting scholarship is the academic
discipline which studies accounting/accountancy
History of accounting
Accountancy's infancy dates back to the earliest days of human
agriculture and civilization (the Sumerians in Mesopotamia), when the need to
maintain accurate records of the quantities and relative values of agricultural
products first arose. Simple accounting is mentioned in the Christian Bible (New
Testament) in the Book of Matthew, in the Parable of the Talents (Matt. 25:19).
The Islamic Quran also mentions simple accounting for trade and credit
arrangements (Quran 2: 282).
Accountancy qualifications and regulation-The expectations for qualification in
the profession of accounting vary between different jurisdictions and countries.
Accountants may be certified by a variety of organizations or bodies, such as
the Association of Accounting Technicians (AAT) [2], British qualified
accountancy bodies including Association of Chartered Certified Accountants (ACCA)
and Institute of Chartered Accountants, and are recognized by titles such as
Chartered Certified Accountant (ACCA or FCCA) and Chartered Accountant (UK,
Australia, New Zealand, Canada, India, Pakistan, South Africa), Certified Public
Accountant (Ireland, Japan, US, Singapore, Hong Kong(see Accountancy in Hong
Kong), the Philippines), Certified Management Accountant (Canada, U.S.),
Certified General Accountant (Canada), or Certified Practicing Accountant
(Australia). Some Commonwealth countries (Australia and Canada) often recognize
both the certified and chartered accounting bodies. The majority of "public"
accountants in New Zealand and Canada are Chartered Accountants; however,
Certified General Accountants are also authorized by legislation to practice
public accounting and auditing in all Canadian provinces, except Ontario and
Quebec, as of 2005. There is, however, no legal requirement for an accountant to
be a paid-up member of one of the many Institutes and other bodies which are
effectively a form of professional trade union. Unlike the Law Society, which
can legally stop a solicitor from practicing, accountancy institutes do not have
such authority. However, auditors are regulated.The "Big Four" accountancy
firms. PricewaterhouseCoopers, KPMG, Deloitte Touche Tohmatsu ,Ernst & Young.
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